THE COMMISSIONER OF INCOME TAX, vs. M/S LAXMI ENTERPRISES

ITA/111/2012HC KarnatakaKAHC01023045201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of CBDT Circular No. 21/2015 dated 10.12.2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and is applicable retrospectively to pending appeals, the appeal filed by the Revenue is to be dismissed. The Revenue's counsel confirmed that the tax effect in this appeal was below the specified limit of Rs. 20 lacs. Therefore, the appeal was dismissed on this procedural ground, without delving into the merits of the ITAT's order. No issue was expressly left undecided.

What were the facts?

This is an Income Tax Appeal (ITA) filed by the Commissioner of Income Tax and the Assistant Commissioner of Income Tax (Appellants/Revenue) against M/s Laxmi Enterprises (Respondent/Assessee). The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore, in IT(SS)A No. 70/BANG/2008 dated 29.12.2011. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's counsel presented a Circular No. 21/2015 dated 10.12.2015, issued by the Central Board of Direct Taxes (CBDT), which enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. The Revenue's counsel stated that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limit for filing appeals as per the latest CBDT Circular. (Question of law) Contentions: Assessee: No specific contentions recorded in the judgment. Revenue: The Revenue contended that the tax effect in the present appeal is below the enhanced monetary limit of Rs. 20 lacs, as per CBDT Circular No. 21/2015 dated 10.12.2015. They relied on paragraph 10 of the said Circular, which clarifies that it applies retrospectively to pending appeals and such appeals below the specified tax limits may be withdrawn or not pressed.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17TH DAY OF DECEMBER, 2015

PRESENT

THE HON'BLE MR. JUSTICE VINEET SARAN

AND

THE HON’BLE MRS. JUSTICE S.SUJATHA

ITA No. 111/2012

ETWEEN

THE COMMISSIONER OF INCOME TAX, PARK VIEW BUILDING, NO.284/1, 4TH MAIN, P.J.EXTENSION, DAVANAGERE-577 002.

THE ASST. COMMISSIONER OF INCOME TAX (INVESTIGATION), CIRCLE-1(1), HUBLI.

...APPELLANTS

(BY SRI. K.V. ARAVIND & MS. PREETHI.J.D-ADVs)

AND

M/S LAXMI ENTERPRISES, RAMAKRISHNA MAHAL COMPLEX, NEHRU CIRCLE, CHALLAKERE, CHITRADURGA DISTRICT.

... RESPONDENT

(BY SRIYUTHS. A.SHANKAR & M.LAVA-ADVs)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN IT(SS)A NO.70/BANG/2008 DATED: 29.12.2011, ETC.

THIS ITA COMING ON FOR HEARING THIS DAY, VINEET SARAN J., DELIVERED THE FOLLOWING:

JUDGMENT

Learned counsel for the appellants-Revenue has placed before us a recent Circular No.21/2015 dated 10.12.2015, issued by the Central Board of Direct taxes, wherein the monetary limit of the tax effect for filing appeals before the High Court has been enhanced from Rs.10 lacs to Rs.20 lacs. In paragraph-10 of the said Circular, it has been clarified that the same will apply retrospectively to pending appeals also, which, if below the specified tax limits, may be withdrawn/not pressed.

Learned counsel for the appellants has stated that the tax effect in the present appeal is below the specified limit of Rs.20 lacs.

Accordingly, in view of the Circular No.21/2015 dated 10.12.2015, the tax effect in this appeal being less than Rs.20 lacs, the appeal stands dismissed.

Sd/-

JUDGE

Sd/-

JUDGE TL

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